Motorpoint has reported a profit before taxation decrease to £3.0m (H1 FY22: £13.5m) in the six months for 30 September.
This, it said, reflects increased investment “relating to delivery of strategic objectives” (£3.5m) and to maintain its price position, against record margins experienced in H1 FY22.
However, revenue increased to a record £786.7m (H1 FY22: £605.2m), helped by market share growth, vehicle mix and price inflation.
The Group share of the 0-4 year old market also increased to 3.7% (H1 FY22: 2.9%).
Retail volumes declined by 8.1% over the period. A strong first quarter has been hampered more recently by a market slow down.
The supermarket has opened further two new market area locations, bringing the total number to 19, with five opened in past 13 months.
Mark Carpenter, chief executive officer of Motorpoint Group said: “I am pleased with the progress the Group has made during the period, delivering record first half revenues, while executing on our investment strategy for growth despite increasingly difficult macroeconomic conditions. Providing our customers with the best omnichannel car purchasing experience is integral to what we do, and we believe this can be achieved through investment in both physical branches and technology. The ongoing success of our investment during the period is reflected in our increased market share of the 0–4 year old market and improved efficiencies across the business.
“We believe that Motorpoint is the best operator in the UK’s used car market. It has proven its ability to grow profitably over its 25 year history and right now there is a significant opportunity for the business to grow its market share whilst remaining profitable. As a result, in line with previous guidance, profitability levels will be lower as we continue to invest in our strategic agenda. The investments made now will enable Motorpoint to emerge from the current macro environment in a stronger position as we seek to deliver sustained shareholder value.”